Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a matter of agreement between an employer and an employee (or the employee's representative). The Employee Benefits Security Administration (EBSA) may be able to assist an employee who did not receive severance benefits under their employer-sponsored plan. Please contact EBSA if you have any questions.
Web Pages on This Topic
"How is Severance Pay Calculated and When is it Due?"
Answers from the elaws FLSA Advisor.
Handy Reference Guide to the Fair Labor Standards Act
Answers many questions about the FLSA and gives information about certain occupations that are exempt from the Act.